Josh Brown thinks this brokerage stock is going 'way higher'

CNBC

5 days ago

Interactive Brokers is a stock that should be on Wall Street's watchlist, according to Josh Brown of Ritholtz Wealth Management. "That's on my best stocks list. I think that's going way higher." the firm's CEO said on CNBC's " Halftime Report " on Tuesday, referring to Interactive Brokers. "Just looking at the way Schwab and Robinhood have been treated, I think that stock should get a bigger rally. And there are tons of those stories everywhere I look in the sector, so I think it's going to continue to work. I think you want to be in financials into end of the year," Brown added. Shares of the electronic broker are up more than 40% in 2025, as investors have grown optimistic on the company's exposure to a wide range of currencies and strong trading volumes seen this year. Interactive Brokers has also benefited from hopes that the Trump administration's deregulation push will be a boon for the financial sector, which is up about 9% year to date. Peers Charles Schwab and Robinhood, which Brown mentioned, have rallied about 29% and 175% this year, respectively. While deregulation is not a catalyst for any specific financial stock, it is a tailwind for growth in the sector, Brown said. He said he thinks financials can do even better given the growth of multi-millionaire households, middle-class consumer spending and "explosive growth" in individuals' 401(k) retirement account balances. "The deregulation story is like the climate," Brown said. "It exists, and it's a different climate than what we experienced over the previous four years. And it probably, in the background, has helped people feel a little bit better about buying some of these wealth managers, asset managers, money center banks at an elevated price-to-book over what they would have paid five years ago when they were being regulated like utilities. So now, there's a little bit more slack in the reins." Analysts covering Interactive Brokers have an average price target on the stock that implies nearly 6% potential upside ahead, per LSEG. Of the 10 analysts covering the name, eight rate it a buy or strong buy. DISCLOSURES: All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. JOSH BROWN IS THE CEO OF RITHOLTZ WEALTH MANAGEMENT AND MAY MAINTAIN A SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.